The digital transformation of organizations is rapidly changing central functions such as accounting and finance. The digitalisation of accounting has brought massive benefits to organizations through process optimization and improved data analytics. Technologies such as AI, robotics, and blockchains are helping accountants to give fast, error-free services to tech-savvy clients.
The modern consumer has fully embraced technology, and their demands of real-time reporting, personalized, and fast service can only be met through the digitalization of accounting. According to a study by the IMA, one-third of accounting teams are spending anywhere from 51% to 75% of their time on repetitive, low-value tasks. Additionally, 56% of the surveyed accountants said they need automation just to keep up with their increasing workloads. The introduction and implementation of purpose-built technology for accounting and finance are helping organizations to reap the benefits of lower costs of production, marketing, and distribution.
The benefits of accounting digitalisation:
Lower operational cost
Improved productivity, time management, and accuracy
Enhanced process control and data analysis
Automated payment and collection processes through a structured electronic document sharing
Improved transparency of processes
Enhanced customer service
The opportunities in digitalisation of accounting:
Account processing– AI-powered invoice management systems can help streamline invoice processing.
Procurement and purchasing– Automation can help businesses turn their procurement and purchasing process paperless, through implementations of machine learning and robotics.
Audit– The digitalization of audits improves efficiency and accuracy. Instead of paperwork, auditors can access digital files that have a detailed digital trail that can be traced.
Closing process– Machines can crunch numbers much faster than humans. Digitalisation can help accountants to manage closing entries more accurately and speedily.
Expense management– AI-powered machines can efficiently read receipts, audit expenses, and reports, and alert management whenever it detects any discrepancy.
Customer service– Chatbot implementation can greatly improve customer service by efficiently solving common customer questions and queries regarding bill dues, account balances, etc.
The challenges of digital accounting:
Digitalisation of processes that are currently not adequately optimized.
Heavy reliance on legacy systems that are not outdated.
Lack of transparency regarding the financial consequences of digitalisation of projects.
Internal conflict regarding the allocation of resources between short-term, medium-term, and long-term objectives and strategy.
No direct employee involvement in the comprehensive modernization strategy of the company.
The strategies companies can adopt to embrace digitalisation of accounting:
Instant bookkeeping service
Bookkeeping services are essential for organizations, and they can be a very time-consuming task. With the help of cloud computing, accountants can easily access all receipts, files, and compute tax returns from the cloud. Digitalisation can help accounting firms to offer instant bookkeeping services.
Easy filing of tax returns
Digital accounting is making the filing of tax returns easier and paperless. Integrating all accounting needs into one online channel ensures a streamlined workflow for financial operations.
Management of staff’s payroll
Machines can help accountants to manage staff payroll with real-time information, and improve the overall efficiency and accuracy of the accounting process. Cloud computing can handle staff management issues such as NI liabilities, PAYE, Holiday emoluments, leave allowances, traveling per diem, etc promptly.
AI and machine learning predictive capabilities can be utilized to offer live financial forecasts to clients. Cloud accounting can help accountants to make the best-updated valuation of stock and commodity markets.
Better client experience
Digital accounting can help accounting firms to improve their customer experience through the personalization of services tailored according to customers’ needs. It can help businesses to offer real-time updates.
The digitalisation of accounting is beneficial for organizations to reap the benefits of technology and deliver exceptional customer service. As machines take over monotonous and repetitive tasks, accounting professionals have more time to contribute their skills in other areas. At Alkye, we help our clients to implement digital transformation with the help of our digital solutions, while also enhancing their customer experience with a comprehensive CXM.